Detroit economy is primarily based on automobile manufacturing. However, over the recent years the dependency on automobile manufacturing is decreasing giving way to the service sector. Unemployment rate has increased recently because of recession with unemployment rate being 22.9% as of May 2010.
Detroit is home to America’s three major automobile manufacturing companies, General Motors, Ford Motors and Chrysler. Almost every automobile manufacturing company has a presence in Detroit. The region also has important defense contractors like General Dynamics. However, 2008 recession impacted the automobile volume and sales. In 2009, a task force was formed by President Obama, to revive the automobile industry and achieve renewed prosperity for the region.
The region ranks fourth in United States in terms of High tech employment. Detroit has marked its presence felt in the field of emerging technology such as life sciences, information technology, and advanced manufacturing. Many big information technology firms have their offices in Detroit like Compuware, IBM, HP, Covansys etc.
Detroit is among the nation’s top five financial hub. All four big accounting firms have their offices in Detroit. The city offers diverse employment opportunities in finance field. Detroit also has presence of almost all the global banks as well as other financial institutions.
The Greater Detroit Foreign Trade Zone (GDFTZ) was created in 1981 to attract international trade by providing tax subsidies and attractive tax rates. Detroit is United States’ number one exporting region and boast of busiest commercial port. Detroit has maintained its position as an important economic destination for international trade.
Detroit has an extensive network of toll free roads. There are no toll roads in Michigan. The Ambassador Bridge, connecting US and Canada is the busiest commercial border crossing and is accountable for approximately twenty seven percent of the total trade which takes place between the U.S. and Canada. Detroit is an important port destination and an important centre for transportation and logistic services. It generates ample employment opportunity. Detroit metropolitan airport is the America’s largest and recently modernized airport. Excellent connectivity has also provided boost to tourism in Detroit.